Capitalism, Growth, Inequality

These flashcards cover key concepts related to capitalism, economic growth, and inequality as discussed in the lecture.

GDP per capita

The total income of a nation divided by its population.

Malthusian Model

A theory positing that population growth will outstrip food supply, leading to poverty and famine.

Equilibrium

A state where economic variables remain unchanged unless influenced by external forces.

Creative Destruction

The process by which innovation results in the replacement of older industries and systems.

Technological Revolution

A period marked by significant advancements in technology that catalyze economic growth.

Comparative Advantage

The ability of a party to produce a particular good or service at a lower opportunity cost than another.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Income Decile

One of ten equal groups into which a population can be divided according to the distribution of income.

Specialisation

The process of concentrating on and becoming an expert in a particular subject or skill.

Government and Institutions

The rules and regulations that structure economic activity and governance.